This is where an asset is held in Trust by someone other than the owner. Any income still remains taxable on the actual owner.
See 'absolute trust'.
A Trust where the Trustee has no obligation except to pass the trust assets to the beneficiaries at their request e.g. upon reaching majority.
Bare Trust is a term used to describe a situation where one party (party A) holds an asset (such as shares) on behalf of another party (party B). The income arising on the asset is taxed as part of party B's taxable income, and any capital gains as part of party B's capital gains.
A trust in which all the duties imposed upon the trustee have been performed or any conditions or terms have come to fruition, such that there is no longer any impediment to the transfer of the property to the beneficiary. The trust is then said to have become passive for the trustee.
A trust set up for a child known by parents or others. It transfers an asset to a child to ensure they get the benefit. The asset will automaticially be transferred to the child when they reach 18.
trust that has become passive for the trustee because all the duties the settlor may have imposed upon the trustee have been performed or any conditions or terms have come to fruition, such as there is no longer any impediment to the transfer of the property to the beneficiary.
A bare trust (sometimes referred to as a simple trust) is a trust in which the beneficiary has a right to both income and capital and may call for both to be remitted into his own name. He is also entitled to take actual ownership and control of the trust property. Although there are trustees, they are only effectively nominees and must act according to the beneficiary's instructions.